boa sept oct
TRANSCRIPT
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from thepublishers deskEver wondered how much an average Indian meal travels to get from farm to plate?
Believe you us; it is definitely not as simple as it sounds!
Our Cover StoryAgriculture Services: A Journey from Farm to Plateenlightensreaders on the wide network of agricultural services, which work at multiplelevels simultaneously and throws light on its revenue and employment generatingcapabilities.
Finance is crucial for every sector, and agriculture is no exception either. The articleonAgri-Finance Institutions: Major Players in Agribusiness Developmenttalksabout the various agri-finance institutions and the crucial role they play in revitalising
the agriculture sector.
Act smart is the buzzword! The marketing of agriculture products is undergoingrapid transformation andOrganic Certification: Smarter Way to Market
Agriculture Productssuccinctly elaborates on this emerging trend.
India is finally waking up to the potential of Research and Development (R&D) inagriculture. The articleAgricultural Research in Indiaspells out the evolution anddevelopment of research, and lists out the benefits it entails.
Learning from the better practices of others has always been our forte. In theInternational section, the article onIndia-South America Trade Ties: An Insighton Marketing Agricultural Produce and Preventing Crop Lossmakes for aninteresting and insightful read.
The case studySoil Based Integrated Management of Flood and Flood PlainSoilsis an in-depth and well-researched piece of work, which talks about thejudicious management of flood.
International cooperation is the way to go forward. AndBRICS Agriculture TradeJumps Manifold; Trends Reveal Healthy Cooperationshows the jump in thevolume of trade within BRICS.
Theres plenty in store in this edition ofBusiness of Agriculture (BoA).Keepyourself updated with theNews & Happeningsfrom the agriculture industry,spread across the pages.
Enjoy Reading!
Linda Brady HawkePublisher
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Business of Agriculture|September-October 20144
Contents
DISCLAIMER: The views and opinions expressed
in this magazine are solely those of the authors
and do not necessarily reect those of the editors
or publisher. Although all efforts have been made
to ensure the complete accuracy of text, neither the
editors nor publisher can accept responsibility for
consequences arising from errors or omissions or
any opinions or advice given.
September-October 2014
Edited, Printed & Published by
Linda Brady Hawke
Owned by
L. B. Associates (Pvt.) Ltd
H-108, Sector 63, Noida - 201301
U. P. IndiaPublished from
L.B. Associates (Pvt) Ltd
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www.lbassociates.com
Managing Editor
William [email protected]
Editor-at-LargeAlankar Srivastava
Desk Editor
Aamir H Kaki
Business Manager
Maninder [email protected]
Tel: +91 120 4727117
Asst Manager - Brand & Event
Shekhar Upadhyay
Circulation
Rahul
[email protected]:+91-8130311653
Layout & Design
Atul Kumar
Pradeep Bisht
6 News & Happenings
COVER STORY
14 Agriculture Services: A Journey from Farm toPlate
INNOVATION
22 Agri-finance Institutions: Major Players inAgribusiness Development
27 Bids Adieu to Traditional MarketingTechniques to Harvest Gold from Agriculture
TECHNOLOGY
30 Organic Certification: Smarter Way to MarketAgriculture Products
R&D
35 Nematode and Soil Fungal Biological ControlSolutions: The Nico Orgo Viewpoint
38 Agricultural Research in India: Evolution andDevelopment
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Business of Agriculture|September-October 2014 5
SOCIAL ENTREPRENEUR
42 Farmer to Consumer Initiative
CASE STUDY
48 Mangrove Restoration through PPP
52 Soil Based Integrated Management of Floodand Flood Plain Soils
FINANCE
58 Agri Finance Consultancy to Farmers: Crucialto Bridge the Knowledge Gap
60 Agriculture Consultancy Services:Strengthening and Transforming Agribusiness
Agriculture
INTERNATIONAL
66 BRICS Agriculture Trade Jumps Manifold;
Trends Reveal Healthy Cooperation
70 India-South America Trade Ties: An Insighton Marketing Agricultural Produce andPreventing Crop Loss
74 International News
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HAPPENINGS
The cultivation of kharif crops is lower by 44.91 percent
so far in Maharashtra, Madhya Pradesh and Rajasthan
compared to the corresponding period last year owing
to delayed and deficient southwest monsoon. The latest
official figures show that the total kharif sowing is lower by
281.84 lakh hectares at 345.60 lakh hectares planted so far.
The sowing of paddy is lower by 17.38 percent compared
to last year, pulses is lower by 60.19 percent, coarse
cereals by 62.04 percent and total oilseeds plantation is
lesser by a whopping 72.12 percent over last year.
The sowing of cotton, which is hit by delayed monsoon
in parts of Gujarat and Maharashtra, is lowered by 44.30
percent than last year in the corresponding period.
Sources said rainfall activity in parts of Maharashtra,
Madhya Pradesh and Rajasthan in the last few days would
have improved sowing which will be reflected in the
statistics released next week.
Scientists are trying to develop heat-stress resilient, high-yielding and nutritionally enriched maize varieties
to face the challenges of global warming.
The Global Maize Programme, an initiative of the International Maize and Wheat Improvement Centre, is
intensively pursuing the development of heat-stress resilient, high-yielding and nutritionally enriched maizevarieties in order to face the challenges of global warming and meet the global demand for maize, the
agencys director Prasanna BM has said.
With the financial assistance of United States Agency for International Development (USAID), the
CIMMYT has undertaken Heat-Stress Resilient Maize for South Asia, a five-year project, for developing
heat tolerant and high-yielding maize varieties, specifically suitable for South Asian climatic conditions. The
project has commenced in 2012 and will end in 2017, Mr. Prasanna said at a press conference at the
University of Agricultural Sciences (UAS).
What about
Irrigation and
Drinking Water
Scheme, ask
FarmersExpressing their disappointment over
the Yettinahole project envisaging
diversion of the Nethravati, farmers
in Dakshina Kannada urged the
Karnataka government to first provide
a comprehensive irrigation and drinking
water scheme for the district.
Speaking at a meeting, Karnataka Rajya
Raita Sangha leader Ravikiran Poonacha
said Farmers in the district would not
allow implementation of the project
unless the government meets their
demand.
The district is bereft of any irrigation
scheme and farmers are forced to spenda lot to irrigate plantations and paddy
fields. In such a situation, there is no
question of allowing the river diversion
project, he said.
Farmers in the district were kept in
the dark about the project even as no
scientific study appeared to have been
carried out on the quantum of water
available in the Nethravati during the
monsoon and the summer added Mr
Poonacha.
NEWS&H
APPEN
INGS
Search for Better Varieties of Maize Continues
Weak Monsoon HitsKharif Sowing
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HAPPENING
S
Mushroom growers of Ganjam district in Odisha fear that they may not get any compensation for their
losses during cyclone Phailin in October 2013.
Their fear is based on information they got from the office of the deputy director of horticulture inBerhampur through an application filed under Right to Information (RTI) Act. A mushroom grower of the
district, B Narasinga Rao had filed this RTI application to know the number of mushroom cultivators, who
had been affected by Phailin.
In its submission of information under RTI Act, the office of the deputy director of horticulture mentioned
that number of mushroom cultivators affected during the cyclone was not available in their office. Mr Rao
said it was ironical that the very department which should have kept track of mushroom cultivation and
the farmers involved in it has not kept track of their losses during the cyclone. According to him, in the
disbursement of compensation for agricultural losses during Phailin, mushroom growers may not get any
succour.
Proper Caution Neededfor GM CropsUnion Minister of State for Environment Prakash
Javadekar said that proper caution has to be taken
in the context of genetically modified (GM) crops
and India cannot say no to science.
Speaking at the launch of the Fifth Assessment
Report (AR5) of the Intergovernmental Panel on
Climate Change (IPCC), he said, We have not said
no to science. Nobody can say no to science. Yes,
we have to take proper caution, we have to take
proper action. But you cannot deny it. We are not
living in Galileos times. Galileo was telling the truth
and he was punished. That was the worst day for
the world.
The event was organised by The Energy and
Resources Institute (TERI), in co-operation with the
IPCC and the Climate Development Knowledge
Network (CDKN), among others. Mr Javadekar
said he was of the firm opinion that whichever
country doesnt believe is science is doomed to fail
and will be left behind.
Govt to use Radiation
Tech to Preserve
Vegetables
The government plans to use radiation
technology developed by the Bhabha
Atomic Research Centre (BARC) in order
to improve shelf-life of fruits and vegetablesespecially onions, potatoes and tomatoes to
address the issue of supply side shortage,
which often results in price rise.
An inter-ministerial group convened
by Transport Minister Nitin Gadkari
apprised itself of the technology during a
presentation by BARC scientists. Among
those present were Union Food Minister
Ramvilas Paswan, Agriculture Minister
Radha Mohan Singh, Food Processing
Minister Harsimrat Kaur, nuclear scientist
Anil Kakodkar and BARC Director Shekhar
Basu.
BARC has developed a radioactive
technology for preserving agri-commodities.
We had an initial discussion on how this
technology can be used on a large scale
in the country to address supply crunch
in some vegetables like onion, potato and
tomato, Mr Paswan said.
Phailin-Hit Mushroom Farmers may not
get Compensation
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Business of Agriculture|September-October 20148
The Reserve Bank of India (RBI) has finally agreed for rescheduling of crop loans for which the Andhra Pradesh
government lobbied hard, but with several riders that include restricting the coverage to some farm loans in
four districts and not including those taken against gold.
In a letter sent to the Chief Secretary, IYR Krishna Rao, the RBI further restricted the relief only to short-
term production loans extended by commercial, cooperative and regional rural banks in the four districts of
Srikakulam, Vizianagaram, Nellore and Krishna which it said, was based on normative criteria. Loans taken
for allied agriculture activities would not be eligible.
The other loans not eligible for crop loan scheme for reschedulement include advances against pledge or
hypothecation of agriculture produce other than standing crop, tied loans and closed crop loan accounts.
The reschedulement will be limited to a period of three years, comprising one -year moratorium and two
years reschedulement.
Cultivate New Varieties:
Cane Institute to Farmers
The Sugarcane Breeding Institute (SBI),
Coimbatore, has urged farmers to cultivate three
new tropical sugarcane varieties introduced by it
recently to increase production.
Inaugurating the 45 meeting of the Sugarcane
Research and Development Workers of Tamil
Nadu & Puducherry, organised by the SBIand Kothari Sugars and Chemicals Limited, N
Vijayan Nair, Director, SRI, Coimbatore, said
that the varieties such as Co0403, Co06027,
and Co06030 would be highly suitable for Tamil
Nadu. They had been tested in different locations
of the country including Tamil Nadu. The trial
cultivation of them had given high yield than some
of the earlier varieties. Though the institute had
distributed seeds of newly notified varieties to
a group of farmers, there was a need to grow
nurseries in large numbers to improve their
popularity among farmers. Hence, sugarcanefactories should take steps to raise nurseries with
the help of farmers in their cover areas. The sugar
industry should take a lead role in popularising
the varieties, he said.
Emphasising the need for adapting modern
technologies , Mr Nair said farmers should
come out of their age-old traditional practices.
If they followed new methods, prescribed by
the research agencies and institutes, they could
improve productivity with less water and efficient
pest management.
The government has chalked out plans to promote the
cultivation of four special traditional rice varieties in
the State that have been included in the Geographical
Indications (GI) registry of India.
An amount of `2 crore has been allocated in the
annual Plan to bring 2,000 hectares of land under
cultivation of Pokkali, Njavara, Jeerakasala, and
Gandhakasala rice varieties that have received the
GI tag, signifying the unique qualities attributable to
their place of origin.
Farmers will be offered an incentive of `10,000 a
hectare to take up the cultivation of these unique
rice varieties. Agriculture Director R Ajithkumar said
efforts were on to work out a marketing mechanism
for the special rice varieties with the help of Oil
Palm India.
NEWS&H
APPEN
INGS
RBIs Scheme of Rescheduling Farm Loans comes with Riders
GI-Tagged Rice Varieties
to get a Boost
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Business of Agriculture|September-October 2014 9
Indian Farmers Fertiliser Cooperative Limited (IFFCO)has moved 2,640 tonnes of fertiliser for sambacultivation.
A consignment of 2,640 tonnes of basal fertiliser hasbeen sourced from its unit in Paradeep, Orissa. Theconsignment would help farmers in Tiruchi, Ariyalur,Perambalur, Thanjavur, Karur, and Pudukottai districts,said D Subramanian, Chief Area Manager, IFFCO,Tiruchi region. The consignment included 1,800 tonnesof IFFCO Phos (20:20:0:13) and 840 tonnes of DAPSteps have been taken to avoid scarcity of fertiliser asan estimated 12 lakh acres would be brought undersamba cultivation simultaneously across the centralregion, he said.
Mr Subramanian said that for the first time, IFFCO has started marketing zinc sulphate to cater to the demands
of farmers.
Horticorp to step upProcurement ahead of Onam
The Kerala State Horticultural Products Development
Corporation (Horticorp) is preparing to step up
procurement from the main vegetable-growing
hubs at Kanthalloor and Vattavada in Idukki district
to meet the spike in demand during Onam season.
Horticorp managing director VV Pushpangadan said,
The business at the festival fairs was expected to go
up by five or six times in the run-up to Onam.
In addition to the mega fairs named Ona Niravu, we
have opened 350 stalls and 17 mobile outlets where
customers can purchase fruits and vegetables at a
discount of 20 to 30 percent. Another 25 mobile stalls
will also be opened, he said.
The corporation is procuring vegetables from
domestic farmers through its district procurement
centres, World Markets under the Agriculture
Department, and self-help groups under the Vegetable
and Fruit Promotion Council Keralam, he added.
Karnataka Farmers to
get Farm Equipment on
Rent
Soon agriculturists in Dakshina Kannada
will be able to take home farm equipment
on rent as the Department of Agriculture
will open five centres, in association with a
non-government organisation, where they
will be rented out.
They will be called called custom hire
centres. A committee would fix the rent
on per-hour per-day basis to suit all types
of farmers. It would be less than the market
rent charged by private parties, according to
sources in the Department of Agriculture.
In addition to Dakshina Kannada, the
Department of Agriculture would open
the centres in all other districts in the
state in association with non-government
organisations (NGOs). A committee
headed by the Chief Executive Officers
(CEOs) of zilla panchayats would fix rent,
decide on the equipment required by
farmers and monitor the functioning of the
centres. The committee would have farmer
representatives as well.
IFFCO Moves 2,640 Tonnes of
Fertiliser for Samba Cultivation
HAPPENING
S
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Business of Agriculture|September-October 2014 1
India has today become an area of priority. One
prime reason for the same stems from the reason
that years of high growth in the Indian economy
have resulted in a significant rise in the volume of
freight traffic moved. This large volume of traffic
has provided for growth opportunities in all facets
of logistics including transportation, warehousing,
food supply chain, freight forwarding, express
cargo delivery, container services, shipping services
etc. During his address, he also complemented
the WDRA, for making efforts for granting
infrastructure status to logistics as with it in place
the industry will be subject to certain entitlements,
leading to the betterment of the logistics sector.
The Industry Perspective was presented by RS Bedi,
Chairman, Task Force on Logistics Management,
PHD Chamber. He emphasised the requirement
for a large number of cold storages and warehouses
in the country. He also expressed concern about
the poor maintenance of warehouses and the lack
of cold chain infrastructure in the country. In spite
EVENTS
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Business of Agriculture|September-October 20142
of all these drawbacks, he stated that the logistics
sector has a bright future in the country and the
expectation is that a tipping point for the industry
will soon be reached, which will propel it to greater
heights.
The Conclave was divided into three panel
discussions which were focussed on Multimodal
Transportation; Cold Chain; and Warehousing
Sector, respectively. In each session, leading
representatives from the logistics industry
expressed their views on the subject and
participants were immensely benefited from the
meaningful and valuable views of the panellists.
Some of the senior representatives from the
industry who attended the Conclave as Speakers
were: BN Puri, Executive Director, Asian Institute
of Transport Development; MS Mathur, Executive
Director/Traffic/PPP, Ministry of Railways,
Government of India; Vinod Nautiyal, Chairman and
Managing Director, EXPAN Logistic; SL Sharma,
President, The Air Cargo Agents Association of
India (ACAAI); Vanish Ahluwalia, General Manager
- Northern Region - NVOCC, All Cargo Logistics
Ltd; Pankaj Kumar, Director, Ministry of Food
Processing Industries (MOFPI), Government of
India; Rajesh Agarwal, Director, Crystal Group;
Jasmohan Singh, MD, Frick India Ltd; Vijit Madan
- Head Sales & Service, Thermo King (Climate
Solutions), India; Pankaj Mehta, Country Head
and Director, Carrier Transicold India; Deepak
Takkar, Vice President - Sales & Marketing and GM,
Emerson Climate Technologies (India) Ltd; Ranvir
Singh, IFS, Joint Secretary, WDRA, Government
of India; VR Khusro, DGM, NABARD; Dr Rakesh
Gupta, General Manager, Punjab National Bank;
and, Dr C Prabhu, Partner, Rabo Equity Advisors,
New Delhi.
Vinod Nautiyal, Chairman and Managing Director,
EXPAN Logistic and other speakers from the
logistics industry, who attended the conclave,
were quite hopeful that the future is bright for
the logistics industry in India and it is perhaps an
opportune time to dive deep into certain specific
developments those in the pipeline as well as
those that must be focussed upon in the near future
which could potentially overhaul the way India
moves, stores and delivers.
Sudhanshu Pachisia, Co-Chairman, Task Force on
Logistics Management, PHD Chamber delivered
the formal Vote of Thanks and Dr Ranjeet Mehta,
Director, PHD Chamber concluded the conclave
with his concluding remarks.
Leading organisations both from the government
and private sector that sponsored this event were:
WDRA; Safexpress - Official Supply Chain Partner;
EXPAN; NABARD; Navigators Logistics Pvt Ltd;
Satkar Logistics - Lanyard Sponsor; MJ Logistics
- Delegate Kit Sponsor; Frick India Ltd; Crystal
Logistic Cool Chain Ltd; Centre for Continuing
Education (CCE) - UPES & ORIGO and the
media partners were Cargo Talk; Cargo Connect;
Logistics Times; Infra Log & Business of Agriculture.
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COVER
STORY
Agriculture
ServicesA Journey
from Farmto PlateBy Alankar Srivastava
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Business of Agriculture|September-October 2014 1
COVER
STORY
Ever wondered how much an average
Indian meal travels to get from farm
to plate? Believe you us; it is definitely
not as simple as it sounds! Rather it
is a fairly long and complex process,
encompassing a wide network of services working
at multiple levels simultaneously.
Once the food is processed, it is manufactured
and packaged. Post that, they enter an extensive
distribution network that brings products from the
manufacturer to various retail outlets spread across
the country.
The transportation, warehousing, cold storage,
retail outlets, etc are all vital segments, playing
crucial roles in the supply chain. Nowadays, even
perishable food can travel long distances with
quality intact, thanks to modern, high-speed
methods of transportation trucks, trains, and
planes and refrigeration and cold storage
network.
The extensive distribution networks have led to the
consumer being the king, who is spoilt for choices
when it comes to variety in food and fibre products.
Business of Agriculturetraces the journey of food
products from farm to plate, sneaking a peek into
each and every aspect of distribution and storage
network.
Warehousing: The Protector and
Guarantor
A scientific storage structure specially constructed
for the protection of the quantity and quality of
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Business of Agriculture|September-October 20146
stored products, warehouse plays a crucial role.
The products stored in warehouses are preserved
and protected against rodents, insects and pests.
They also ensure that the moisture and dampness
dont play spoilsport. Warehousing is an integrated
scheme of scientific storage, rural credit, price
stabilisation and market intelligence, and is
intended to supplement the efforts of cooperative
institutions.
Storage of produce is an important task. If the
crop grains are to be kept for longer time, they
should be safe from moisture, insects, rats and
micro-organisms. The fresh crops contain more
moisture. If freshly harvested grains are stored
without drying, they may get spoilt, thus losing their
germination capacity. Therefore, prior to storing
them, the grains should be properly dried in the sun
to reduce the moisture content. This also prevents
the attack by pests, bacteria and fungi. Farmers
store grains in jute bags or metallic bins. However,
large scale of storage is done in silos and granaries.
For storing large quantities of grains in big godowns,
specific chemical treatments are required.
According to global property consultancy Knight
Frank, Indias warehousing requirement was
expected to grow at an annual average rate of nine
percent to 1,439 million sq ft in 2019 from 919
million sq ft in 2014.
The India Logistics and Warehousing Report 2014
said that the governments renewed focus on
incentivising the manufacturing sector will boost
growth of warehousing. The logistics market will
reap the benefits of this growth in the coming
years. Additional demand for warehousing space
per year will be around 104 million sq ft till 2015,
and will entail investments of about `15,000-16,000
crore every year, the agency estimated.
The investments will go towards land acquisition
and cost of construction. Investment in warehouse
can provide an opportunity of realising returns in
the range of 12-20 percent per annum to investors
willing to explore this sector, the report said.
The Central Sales Tax structure is forcing
companies to locate warehouses in all the states
they operate in, which leads to an inefficient
supply chain. Introducing the Goods and Services
Tax (GST) will streamline the taxation procedure,
creating an effective supply chain. Its high time
that the government introduces GST, so that the
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STORY
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Business of Agriculture|September-October 2014 1
operation of the warehousing sector is streamlined
without further delay.
Some of the logistics companies with a presence in
the warehousing industry include Allcargo Logistics
Ltd, Gateway Distriparks Ltd, Transport Corp of
India Ltd, Gati Ltd, Sical Logistics Ltd and ContainerCorp of India Ltd.
Important Functions of Warehouses
Scientific Storage:Here, huge quantities of
agricultural commodities are stored. Various
methods of preservation are implemented, so that
the product is protected against quantitative and
qualitative losses.
Financing:It goes without saying that financing
holds the key to warehouse management. They
must meet the financial needs of the person
who stores the product. Nationalised banks,
especially National Bank for Agriculture and Rural
Development (NABARD) and others advance
credit on the security of the warehouse receipt
issued for the stored products to the extent of 75
to 80 percent of their value.
Price Stabilisation: By checking the tendency
to making post-harvest sales among the farmers,
warehouses help in price stabilisation of agricultural
commodities. Farmers can store their products in
warehouses during the post-harvest season, when
prices are low and sell it once they are assured of
good returns on their products. Warehouses even
inform farmers about the current market prices,
thereby preventing distress sales and apprise
them about the emergence of favourable market
conditions, so that they get the best value for their
product.
Today, there is a greater demand for advanced
and comprehensive warehousing services in India.
Two factors that have comprehensively spiked this
demand are the development of organised retail in
India and the growth of the manufacturing sector.
In order to make the most of the opportunities,
the private sector of the warehousing market must
get its act together and reorganise itself. According
to an industry report by the Associated Chambers
of Commerce and Industry in India (ASSOCHAM),
India is short of 10 million tonnes of cold storage
capacity, resulting in the wastage of over 30 percent
of agricultural produce every year.
Warehousing infrastructure developments will
also receive a thrust from the improvements in
transport modes. Property developers, who have
identified significant opportunities in warehousingin India, are planning to build warehouses. All
these developments will enhance the availability of
warehousing services in the country.
Transportation: A Transformation in the
Making
When it comes to transportation, India is largely
dependent on road and rail networks. However,
the recent decision of the Food Corporation of
India (FCI) to move food grains through the sea
route from Kakinada to Kochi could alter the whole
dynamics of the transportation network. The
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STORY
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government has already approved the container
movement of 20,000 MTs of rice per month from
Kakinada to Kochi. The decision to utilise sea routes
will go a long way in reducing bottlenecks in the
transportation network.
Cold Storage Facilities: Miles to Go
Due to the lack of adequate cold storage facilities
and refrigerated transport, India is throwing away
fresh produce worth billions every year. Currently,
India does not have a comprehensive cold chain
network, which is estimated to grow to `32,000 cr
by 2015.
During the past decade, there has been a
tremendous growth in the production of
horticulture produce, dairy products, and meat
products. There has been an urgent need for
creation of a cold chain network, which is crucial
for longevity of perishable food commodities.
A well-integrated cold chain network will improve
supply chains and reduce losses during produce
handling and movement to a large extent.
A vast network of cold storage issine qua nonfor
dealing with the long-term storage of potatoes,
onions and high value crops like apples, grapes
and flowers. Potato cold storages used to
contribute 88 percent storage capacity till the year
2000. Nowadays, new cold storages are being
constructed as multipurpose facilities focussing on
all fruits and vegetables, poultry, dairy and FMCG
product categories.
With more than 3,500 companies in the whole
value system, the Indian cold chain market is highly
fragmented. Cold storage solutions comprise about
85 percent of the Indian cold chain market by
value, and the balance 15 percent is contributed by
transportation.
There are various standalone, integrated companies
and 3PL service providers offering cold storage
and transportation solutions to various food
companies. The fact of the matter is that the cold
chain business in India is a lucrative proposition for
foreign investors due to high growth prospects for
the food processing sector, along with attractive
government incentives.
Marketing and Pricing: Aiming for High
Profits
Similar to the process of production, the pricing
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STORY
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and marketing of agricultural commodities is
instrumental in maximising profits. Successive
governments have stressed the development of
physical markets, on farm and off farm storage
structures, facilities for standardisation and grading,
packaging and transportation through different Five
Year Plans.
The damage caused by pest infestations leads to
a reduction in market value, depending upon the
extent of damage. Most agricultural commodity
markets usually function under the demand and
supply mechanism. The government also fixes
minimum support prices or statutory prices for
certain crops in order to protect the interests
of farmers, and encourage them to increase
production. If the price of these commodities falls
below the support limit, the government arranges
to buy these crops.
The government supports organised marketing of
agricultural products through a system of regulated
markets in India. These physical markets are meant
to make sure that farmers get reasonable profits
by creating an atmosphere of fair play. This fairness
is with regard to the forces of supply and demand,
regulation of market practices and transparency in
transactions.
Most State Governments and Union Territories
have enacted legislations like the Agricultural
Produce Marketing Committee Act to provide for
regulation of agricultural produce markets. This
leads to an efficient system of buying and selling of
agricultural commodities. The mechanism ensures
a reasonable amount of profits to agriculturalists for
their crops and other agricultural products.
Basic facilities such as internal roads, boundary
walls, electric lights, loading and unloading facilities,
and weighing equipment are available at more than
80 percent of the markets. Auction platforms,
drying yards and more and more cold storage units
are very much in the offing.
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The Way Forward
India is an agricultural country, which remains
the mainstay of the economy. Commercialising
agricultural production is the need of the hour.
Fortunately, production and distribution of food is
finally getting the attention it deserves.
Gone are the days when agricultural marketing
was all about the farmer selling his products to the
consumer on a cash or barter basis. The journey
of food from farm to plate has undergone rapid
transformation. In fact, it has to undergo a series of
exchanges or transfers from one person to another
before it reaches the consumer.
There are three marketing functions: assembling,
preparation for consumption and distribution.
Selling the agricultural produce depends on the
demand of the product at that time, storage
infrastructure, etc. The products may be sold
directly in the market, or stored locally for the time
being. Moreover, it may be sold as it is gathered
from the field or it may be cleaned, graded and
processed by the farmer or the merchant of the
village.
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STORY
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Processing depends on the demand and quality
of the product. The task of a distribution system
is to match the supply with the existing demand.
Agricultural products in India are mostly sold by
farmers in the private sector to moneylenders/
village traders. Products can be sold at a weekly
village market. They are even sold at irregularlyheld markets.
Central government organisations like Commission
of Agricultural Costs and Prices, Food Corporation
of India, Cotton Corporation of India, Jute
Corporation of India, etc. are involved in
agricultural marketing. There are also specialised
marketing bodies for rubber, tea, coffee, tobacco,
spices and vegetables.
Agricultural production is much more than a
commercial activity. Rather it is a part of Indian
tradition. Marketing and allied commercial activities
associated with agriculture must be infused with
fresh perspectives. The value added services needs
to be further augmented, and policymakers should
set their priorities right.
Its time the Indian agricultural sector realises its
potential. Agriculture services are not only revenue
generating sector; it can also provide employment
that the country teeming with billions needs.
Ants employed to defend African mangoes
African farmers could effectively control fruit fly damage to citrus fruit, cashew and cocoa crops by
using the weaver ant as a method of biological control, according to researchers.
Paul Van Mele and colleagues published their work in the edition of the Journal of Economic
Entomology. The weaver ant, Oecophylla longinoda commonly found in Africa, Asia and Australia
preys on fruit flies and is already used in several Asian countries and Australia to protect citrus and
other fruits from fruit fly damage.
Fruit fly damage has a large economic impact on African farmers. As pesticides are often too expensive,
they harvest fruit before it matures to prevent damage, but an estimated 40 per cent is still lost. The
European Union and the United States have banned imports of West African mangoes due to fruit fly
damage. Van Mele and colleagues conducted a study in Benin to assess whether mango plantations
containing weaver ants had less fruit fly infestation than those with few or no ants.
Business of Agriculture|September-October 2014 2
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STORY
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Agri-finance InstitutionsMajor Players inAgribusiness Development
In this current scenario of globalisation and
market-based economy, agriculture needs
reorganisation from a socialist venture to
a profit making venture. Agriculture is the
backbone of the Indian economy. I dont find
any disadvantage if Indian government focusses on
agriculture upliftment and making it result-oriented.However, it needs proper functioning and long-
term planning.
Agriculture is the largest employer to the Indian
population; around 51 percent of the workforce
is engaged in agriculture and other agro-based
services. It contributes around 17 percent to
the GDP. Major Indian industries like textiles,
sugar, food processing and guar gum, fisheries,
animal husbandry, dairy, etc, are totally based on
agriculture. Agriculture also provides employment
opportunities for other service industries like
transportation, foreign trade services, etc.
India has the gift from God of favourable climatic
conditions where crops can be grown throughoutthe year. But still Indian agriculture faces a lot
of problems. As there is no proper storage
infrastructure, there is a 17 percent post-harvest
loss in agriculture produce and in the case of fruit
and vegetable, this loss is 30 percent. All this costs
`250,000 crores annually, to India. On the other
hand, farmers do not get good prices for their
produce. Due to urbanisation, agricultural land is
also shrinking day-by-day.
By Ganesh Prajapat
Business of Agriculture|September-October 201422
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All these problems, we can say, are associated with
lack of long term policies and proper financing
in the agriculture sector. Central as well as State
governments needs to work on long-term concrete
steps. The scope of agribusiness is very broad
as it covers all major rural activities and further
processing of agricultural products. Agribusiness
can be a profit making industry with right
intervention of financial services. Agribusiness needs
huge financial support to modernise it. The farm
operations and allied activities like dairy, poultry,
floriculture, fishing, horticulture, bee keeping,
food processing, transportation and others, need
modernisation and automation.
Currently, NABARD is the umbrella organisation
for finance and assistance in agriculture. In addition,
nationalised banks, co-operative banks and private
banks provide financing services, under NABARD
guidelines. Non institutional agriculture finance also
plays a major role, especially for those who do not
have anything as collateral to get finance, especially
small farmers and entrepreneurs.
In broad terms, financial services can play three
major roles.
Corrective Roles: Making long-term policies and
planning for correcting existing gaps in agribusiness
or taking corrective steps to make good of loss
making activities. In the existing government backed
system, farmers/entrepreneurs avail of subsidies to
start a venture, but the venture does not end up
profitable. Therefore, financial institutes can take
corrective steps and can guide them towards profit.
Supportive Roles: Farmers/entrepreneurs, while
starting a venture, put in a lot of hard work but
they need proper financial support to run the
venture smoothly. For example, if a person is
involved in dairy farming using manual methods,
it is a time consuming process. In these types of
ventures, financial institutes can assist these players
by providing them proper technical and financial
assistance, so that they can be more profitable and
result-oriented.
Innovative Roles: This is the most crucial role;
financial institutes can play toward innovation or
introduction of new technology among players.
Every year, scientists and research institutes in
India do a lot of research but these researches do
not channelize to the farm within the timeframe.
Financial institutes can promote new activities and
technology with the help of their plans and support.
Activities Which Need Financial
Assistance
Training:Manpower needs to be trained as per
current market requirements, quality standards and
latest technology, to make a venture profitable to
agriculture.
The scope of
agribusiness
is very broad
as it covers all
major rural
activities
and further
processing ofagricultural
products
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Business of Agriculture|September-October 2014 2
the first step towards success. Financial institutions
should select a beneficiary on the basis of his age,
educational skill, technical skills, economic level,
and social and political environment of proposed
project location.
Economical Viability of Project:Financial
institutions should check economic viability of the
projects. Projects with no economic viability must
not be funded.
Training:Financial institutions should have sample
projects, so that they can provide proper practical
training to a selected beneficiary. If the beneficiary
is not comfortable with the given project then he
should be given options for another project. Without
successful completion of academic and practical
training, the project should not be sanctioned.
Land Bank:Financial institutions should have
their own land banks to develop agro-based
small units. These land banks should have all the
necessary facilities like communication, storage,
transportation, electricity, water and connectivity. It
would be easy to monitor projects and assist them
in a more professional way.
In-house Technical Team of Subject Matter
Specialist:Entire sanction projects must be
approved by the in-house team. A project should
not be approved without approval of a technical
team. Like for financing a dairy project, cattle must
be approved by in-house veterinary doctors and
animal husbandry experts.
Team of Technical Experts for Execution: The
project must be executed by a beneficiary underclose supervision of a technical experts team. A
team must ensure that the project is going as per
plan and there are no chances of failure.
Instalment based Finance: Projects should not
be financed one time; a complete project should
be divided into different steps. Every step must be
financed after completion of previous steps. For
example, if someone is going for a processing unit,
the first step is to acquire land; the second is to set
up a building; the third step is to avail basic facilities;
the fourth step is installation of machinery; the fifth
is to get manpower; the sixth step can be operation
and so on. It means there must be a clear chain,
connecting each step.
Regular Monitoring of Existing Projects: There
must be a monthly review of existing projects. The
team should check if these are going as per the
given plan. If there is a problem, it should be solved
through a prompt response team.
Marketing Support: Institutions should be linked
to buyers. There must be clear planning that final
produce will be purchased by the target buyers. If it
is used by other industries then it must be checked
that particular industry can purchase produce/
processed product. If produce is for retail sale then
there must be infrastructure to sell it.
External Audits: There should be external
independent audits from time-to-time, so that
institutions can get feedback of performance and
viability of projects.
Introduction of Latest Technology: Financial
institutions should have a hold on technical
knowledge in ventures. The institutions should
promote only those projects in which they have
strong technical expertise. Financial institutions
must have links with national and international
level academic and research institutes so that
there should be free flow of latest research and
technology.
There must be
clear planning
that final
produce will
be purchased
by the target
buyers
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Bids Adieu to TraditionalMarketing Techniques to
Harvest Gold from AgricultureBy Sameer Abbas
There is no denying the fact that
agriculture is the basic source of
food for billions, and farmers are the
basic food producers. But, most of
the time, these food producers are
forced to starve due to extreme financial losses in
crop production. Although, there are many factors
responsible for such losses, the absence of a concrete
marketing strategy is the key factor that hampers the
sales prospects of agricultural produce.
Marketing is one of the most crucial elements of a
business effecting sales and productivity. It involves
getting the right product at the right price, endorsed
using the right media and selling at the right place.
Its main motive in many businesses is to generate
more sales. In fact, marketing is the life blood of
every commercial activity. You have to use marketing
strategies to create product awareness. And, this
saying applied to agriculture segments as well.
Farmers in many developing nations are stuck
to old-fashioned farming as well as marketing
techniques. Time has come to revolutionise the
too-traditional agriculture segment.
Marketing, in agriculture, comprises all the
activities involved in the transformation of
commodities sold by farmers into food and fibre
products purchased by consumers. The most
evident feature of this transformation is a change
in physical appearance of the product. Form
changing activities for agricultural commodities
range from washing and grading apples to
processing wheat into Wheaties.
Another crucial marketing function is
transportation. Agricultural commodities must
somehow get from the farms where they are
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Business of Agriculture|September-October 201428
grown to the retail outlets where they are bought,
and in some cases moving across a country or half-
way around the world. Time is another important
aspect of marketing. Many agricultural commodities
must be harvested at a specific time, but can be
stored for later use and in some cases be consumed
year-round. Finally, in a specialised economy, most
consumers are not producers. Marketing involves
the transfer of ownership or possession from
those individuals who produce, ultimately, to those
individuals who consume the food or utilise
the fibre.
The transformation of markets changes the value
of commodities. It changes their form, place, time,
and ownership as the commodities move through
the marketing system. These functions not only
create value but also add an associated cost. You
can achieve profit if the value added by different
marketing functions like processing, transportation,
storage, or brokerage, exceeds the costs of
performing those functions.
Marketing, to the majority of farmers, means
commodity marketing. Farmers produce wheat,
barley, rice, vegetables, pulses or other items.
Basmati rice offered by one farmer is pretty much
like any other farmers Basmati rice. The case is the
same with wheat and other agricultural produce.
Thus, the commodity, one farmer is offering, is
freely interchangeable with the commodity offered
for sale by other farmers. In fact, commodity
markets are highly competitive because there
are many buyers and sellers of the same basic
commodity. Price variations among various market
locations seldom exceed transportation costs and
price changes over time tend to reflect seasonal or
cyclical cost differences.
Commodity marketing decisions are basically
restricted to decisions of timing. Farmers can price
their commodities through reserved contracts or
futures markets, attempting to get a price higher
than market price at the time of delivery. Or they
can store commodities for later sale, hoping that
market prices will rise more than their costs of
storage. In either case, farmers are matching with
speculators, who make their living by buying,
Commodity
offered forsale by other
farmers. In
fact, commodity
markets
are highly
competitive
because there
are manybuyers and
sellers of the
same basic
commodity
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pricing, storing, or selling commodities. Most
conventional farmers are not particularly good
speculators. They make a living by keeping their
costs competitive and, thus, being able to stay in
business at competitive market prices.
Product marketing is different from commoditymarketing. Commodities are alike, but products
have different characteristics and marketing
values. These differences may be tangible in
nature (as in nutrient values of foods) or intangible
(as in consumer acceptance created by brand
advertising). Differentiation creates a more or less
unique market for a product, taking it out of direct
competition with other products.
Products may also be differentiated with respect
to time. Location is another factor which
differentiates the value of products. Farmers near
population centres have a distinct advantage in
most direct marketing strategies. Pick-your-own
fruit, vegetable, or berry farms, for example, must
be located within reasonable driving distance of
a significant population centre. Farmers markets
are also logical market outlets for producers of
fresh produce from a fairly limited geographic area.
Product handling and transportation technologies,
however, have reduced the significance of location,
either as an advantage or as an obstacle in
marketing.
What Could Be Creative Marketing
Strategies? Minimise middlemen profits by supplying
products directly to the place of final
consumption;
Adopt proper marketing and advertising
strategies to attract maximum buyers for yourproduce;
Try to minimise marketing cost by applying
innovative techniques to increase profit margin;
Harvest high-yielding crops;
Try to sell crops directly from the field to save
transportation and storage costs;
Try to diversify your potential markets;
Tell your story to potential customers;
Do market research; and,
Keep records to help you make decisions.
Reference sources: The Role of Marketing in Sustainable
Agriculture, John E. Ikerd
http://grassrootsresilience.wordpress.com/2012/02/15/adopt-
innovative-agricultural-practices/
Curbs on Onion Trade Leave Nashik Farmers in Tears
With a dejected expression, Narhari Nagri stood next to a truck laden with 20 quintal of onions. Having
travelled all the way from his village to auction his produce at Lasalgaon Mandi Asias largest wholesale
market for onions it was another disappointing day for Narhari. He had to be content with a selling
price hovering around `14-15 per kg, much lower than he had desired. That doesnt even cover the
costs, he pointed out in distress.
Onion cultivators in Maharashtra faced devastating losses this season due to crop damage by hailstorms.
Things had only just begun to improve when the Central government recently decided to include onion
in the essential commodities list.
The government purportedly took the step in a bid to check rising prices and clamp down on hoarding
by traders as they now cannot stock more than a prescribed quantity. It, however, hampered farmers
chances of recouping their losses as prices have fallen.
Sameer Abbas is a Freelance Business
Journalist.
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Business of Agriculture|September-October 201430
T
he Organic Industry will be a vibrant
sector in the years to come. What
we used to eat 100 years ago is now
termed as organic food. Indias
traditional farming system, agro-
climatic conditions, diversity in vegetation and
culture suits to organic farming.
Consumers are demanding healthy, nutritious,
safe, and natural food nowadays. Third Party
Certification as per regional or national and/or
private standards plays an important role to verify
safety of the products marketed as Organic. In
the era of mall culture and consumerist world, one
must see products labelled as certified before
purchase. Each labelled product must contain
a tracking and traceability number, followed by
reference to organic production method. This
will help consumers to track the product back
to its source and also to investigate or take
corrective actions if the product does not meet
their requirement. Time has come that conscious
consumers must change their shopping habits due
to food safety concerns. Brand name or higher
price alone may not be a direct indication of
safer food.
Certification Body (CB) accredited by National
Accreditation Board (NAB), Government of India,
offers third party certification in our country. CB
Organic Certification: Smarter Wayto Market Agriculture Products
By Narayana Upadhyaya
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certification activities are monitored and regulated
by NAB. CB offers certification as per Indias
National Organic Standard and takes responsibility
to guarantee consumers about the safety of the
products they certify.
An organic certification label has positive meaning
to the consumer with respect to food safety and
conservation of vital natural resources like water,
soil and bio-diversity. Third party certification also
ensures sustainability of farming systems, ecology
and economics of the farmers. It also ensures
integrity of organic products at every stage of the
food supply chain (starting from farm to shelf).
Recent statistics shows that $63 billion worth
certified products transacted in the international
market and Indian contribution was found to be
only 0.35 percent. We, as a country, need to be
always aware of international/domestic demand
for quality food and utilise our natural resources
accordingly rather than supply what is available.
Taste excellence and environmental sustainability
can go hand-in-hand.
Farmers in India, from the supply side, have a
great opportunity and can market healthy produce
by opting for third party certification. Organic
certification improves the market linkage, helps
to understand the cost of production and gives
importance to family farming systems. It also
addresses the problem of soil degradation which
leads to fall in productivity. Organic farming is
comparatively less risky compared to conventional
farming.
Organic certification certainly gives unique
marketable opportunity for a processor or a
trader in domestic as well as international markets.
Certified raw ingredients or processed products,
marketed with organic certification, fetch better
price for keeping the products healthy and for
An organic
certification
label has
positive
meaning to
the consumer
with respect to
food safety and
conservation
of vital naturalresources like
water, soil and
bio-diversity
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Business of Agriculture|September-October 201432
taking due care from farming to final destination.
Certification guarantees that the processor/trader
kept the organic integrity of the products at every
stage of processing. Past statistics shows that out of
total organic products exported from India covers:
Fruits/Vegetables 30 percent;
Dairy Product 15 percent;
Grains/Pulses 5 percent;
Spices 10 percent;
Processed Products 33 percent;
Non Food Items 7 percent (which includes
textile and cosmetic items).
The major organic products exported from India
are tea, basmati rice, soybeans, sugar, mangoes
(in processed form) and spices. Indian cuisines
are enjoyed by many in the international market,
nowadays. Innovative products and super grains like
flax seeds, grain amaranths (which are nutritionally
dense or rich) are highly in demand in US/EU
markets. Organic certification helps in telling the
story of certified products to the consumers.
Organic and allied certificates promote the
sustainability approach in food business.
Certifications take into consideration issues like
climate change, carbon neutral, water neutral,
energy saving, bio-diversity etc. One needs to have
clear planning of production/processing techniques
which must be in compliance with the applicable
standards. All activities must be tightly controlled by
trained people and show continuous improvement
in every aspect to produce healthy and safe food
by respecting natural resources. By opting organic
certification, you can tackle the problem of cross
contamination, chemical residues and adulteration
of food. Every household must consume organic
products, which is the right of every citizen in India.
Modern processing techniques, which are approved
as per organic regulations/standards, can help in the
growth of Ayurvedic and food supplement products
market.
Narayana Upadhyaya, Aditi Organic
Certifications Pvt Ltd, Bengaluru.
The major
organic
products
exported from
India are tea,
basmati rice,
soybeans,
sugar, mangoes
(in processed
form) and
spices
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Nematode and Soil FungalBiological Control Solutions
The Nico Orgo Viewpoint
Nematodes are a diverse animal
phylum inhabiting a very broad
range of environments. They
are ubiquitous in all habitats that
provide available organic carbon
sources. They are the planets most abundant
metazoa. They range in reproductive potential from
explosive opportunists to conservative survivalists.
Because they are transparent, their diagnostic
internal features can be seen without dissection.
They can, therefore, be identified without
biochemical procedures. They also contribute to
a variety of functions within the soil system. As
in agricultural systems, nematodes can enhance
nutrient mineralization and act as biological control
agents. They vary in sensitivity to pollutants and
environmental disturbance.
Nematode infestations belong to the major
stresses, affecting crop production worldwide.
The estimated annual yield losses go up to 12
percent due to plant parasitic nematodes in the
worlds major crops, points out Kartik Laijawala
director of Nico Orgo Company. He added, In
India alone, recent estimates show, nematodes are
responsible for both quantitative and qualitative
yield losses amounting to about $300 million per
year. Damages are especially big on crops like
banana, sweet potato and sugar beet.
Nematodes leave the plant of resistance and
synthetic nematicides indiscriminately destroy
beneficial soil fauna. Common fungal diseases in
soils also cause big damages. Fusarium, Pythium
and Rhizoctoniapose the greatest risk to healthy
By Kartik Laijawala
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Pseudomonas Fluorescens:A microbial agent
which protects roots against both fungi and
nematodes.
Paecilomyces Lilacinus is a parasitic fungus that
attracts the sedentary stages of nematodes. It
colonises nematode egg masses, severely affectingnematode populations. It destroys up to 90 percent
of eggs and 75-80 percent of egg masses.
Trichoderma Viride is one of the strongest
soil-borne fungal species, it is antagonistic to
several economically-important pathogens such
as rhizoctonia and fusarium. Additionally, it acts
as a bio fertiliser due to its ability to solubilise
phosphates in the soil and quickly decompose
organic matter. Mode of action of trichoderma
viride has the ability to colonise the surface of the
seed and kill the pathogens present on its surface.
However, it can protect the plant through its life
cycle through mycoparasitism and antibiosis.
roots and soils and, if not treated, it can even
cause complete failure in affected plants. Just like
nematodes, they exist out of sight, in the root zone
and so many farmers lack the necessary awareness
to combat them said Laijawala.
Chemical solutions exist but many are now unviablein terms of what they do to the environment and
human health. Methyl bromide and carbofuran
are all recognised toxic chemicals and banned in
several parts of the world. Laijawala states, Proper
solutions have been found with organic pest
control, botanical and biological alternatives. The
solutions need to be studied and barriers to entry
must be eased for quicker uptake. He describes
three useful bio-control agents:
Paecilomyces Lilacinus:A beneficial fungus
which controls several species of nematodes;
Trichoderma Viride:A beneficial fungus
antagonistic to fungal pathogens such as
fusarium, pythium, and rhizoctonia;
Trichoderma
Viride is
one of thestrongest soil-
borne fungal
species, it is
antagonistic
to several
economically-
important
pathogens suchas rhizoctonia
and fusarium
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Pseudomonas fluorescens is the superman of the
bacterial world! It acts as a nematicide, fungicide
and can also aid in growth promotion. It is non-
specific in its ability to protect plants and, once
established, it works against several different
pathogens while inducing systemic resistance in
the host plant. It produces secondary metaboliteswhich play an important role in plant disease
suppression. Pseudomonas fluorescens aggressively
colonises the roots of the crop and suppresses
disease by inhibiting phytopathogens in the soil or
on the roots by competition.
According to Laijawala, there are several advantages
of using these three biological agents, the first
being eco friendly: zero residual toxicity and
total degradability. They are non toxic to humans,
animals, plants and predators of insects. These two
biological agents can be used at all stages of crops.
They promote plant growth and do not lead to
development of resistance in plant pathogens. Some
of them, such as Trichoderma Viride, have also
an effect to help nutrient uptake. Formulated as
living products, these biological agents need some
precautions; they must be applied during evening
hours (cooler temperature), and if conditions are
dry, the field should be irrigated before application.
Chemical fertilisers and insecticides should not be
sprayed 5-7 days before or after, for best results.
Also, these biological products need to be stored in
a cool place away from direct light and heat. Since
these products work primarily in the soil, they are
considered effective on most crops, ranging from
fruits and vegetables, to plantation and ornamentals.
They can also be used for landscapes, forestry, turf
management and home gardening, which means, a
wide range of possibilities in the future.
Mangalore Farmers to get Huge Subsidy
The Horticulture Department will offer subsidy for farmers in Mangalore to introduce drip and
sprinkler irrigation systems for horticulture crops on up to five hectares (ha) of land in its efforts to
conserve water as well as to improve the yield.
While 90 percent subsidy will be offered up to two ha, 50 percent subsidy will be offered to the next
three ha to all farmers in the district, said an official release.
The subsidy would be provided to horticulture crops except coffee, tea and rubber. Fertigation, the
process through which fertiliser is mixed in water before being dispensed to plants, was compulsory
and part of the drip irrigation system, the department said. It said the fertigation would ensure
availability of nutrients to plants without any wastage, and would also save expenditure on fertiliser by
20 to 40 percent, and the cost on labour and electricity.
Kartik Laijawala is a Partner with Nico
Orgo Manure.
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Agriculture is the backbone of Indian
economy and plays the most
decisive role in the socioeconomic
development of the country.
Agriculture in India is a miscellaneous
and extensive sector that caters to a large
number of actors. India has one of the largest and
institutionally most complex agricultural research
systems in the world. The agricultural research
system in India includes around 27,500 scientists
and more than one lakh supporting staff, actively
engaged in agricultural research. Historically, the
Indian agricultural research system is the pinnacle
of a process which started in the 19th century and
resulted in the establishment of Imperial (now
Indian) Council of Agricultural Research (ICAR) on
the recommendation of a Royal Commission on
Agriculture in 1929. In the current research system,
the ICAR at national level mainly aids, promotes
and coordinates research and education activities in
the country.
Agricultural Research in Post-
Independence India
In 1948, there were only 17 agricultural colleges
in the country. It shows that before independence,
higher education in agriculture was almost
ignored. Since Independence, there has been a
substantial growth in the National Agricultural
Research System (NARS). During 1948-49, the
University Education Commission headed by Dr S
Radhakrishnan, suggested that the country should
focus on the establishment of rural universities.
Major HS Singh and AN Jha (Chief Secretary and
Development Commissioner, UP) visited Land-
Grant Universities of the United States in 1950 and,
advised to set up such a university in Uttar Pradesh
(UP). This event may be regarded as the one, which
Agricultural Researchin India: Evolution andDevelopment
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led to the initiation of agricultural universities in the
country. In 1955, the first Joint Indo-American Team
was set up, which suggested the founding of rural
universities in each of the States in India.
In the year 1956, a draft for agricultural universities
was prepared and this provided the root for theproposal by Government of UP to the Central
Government for starting an agricultural university
near Rudrapur in the tarai region of UP. In the year
1959, the second Joint Indo-American Team was
set up. The team submitted its report in 1960. The
team suggested that the agricultural universities
should be autonomous; consist of colleges of
agriculture like veterinary, animal husbandry, home
science, technology, and basic sciences under them;
have inter-disciplinary teaching programmes; and
integrate teaching research extension.
The first State Agriculture University (SAU)
was established in 1960 at Pantnagar in UP. The
SAUs were given autonomous status and direct
funding from the state governments. They
were autonomous organisations with state-
wide responsibility for agricultural research,
education and training or extension education.
The establishment of the SAUs, based on a pattern
similar to that of the Land-Grant Universities in the
United States, was a landmark in reorganising and
strengthening the agricultural education system
in India. These universities became the branches
of research under the ICAR and became the
partners of the NARS. The green revolution, with
its impressive socio-economic impact, witnessed
significant contributions from the SAUs, both in
terms of trained, scientific workforce and the
generation of new technologies.
Role of Institutions in Agriculture
Research
The SAUs are the major partners in growth and
development of agricultural research and education
under the NARS. All the major states have at least
one SAU, and most of the SAUs are multi-campus
universities. A large number of non-agricultural
universities, government organisations and public
sector undertakings are also involved directly or
indirectly in agricultural research. Some universities,
like Banaras Hindu University, have independent
faculty for agricultural research and education,
while government departments or scientific
organisations - like the Department of Science and
Technology (DST), Department of Biotechnology
(DBT), Council of Scientific and Industrial Research
(CSIR), Department of Research and Development
Organisation (DRDO), etc - conduct or support
agricultural research directly or indirectly.
The ICAR as an apex body coordinates research
and promotes inter-institutional research linkages.
Since the ICAR supports SAUs through regular
grants, it has direct participation in the management
of the SAUs. In addition, regional committees were
formed in 1975 to assess the status of research,
extension and education in the ICAR institutes
and the SAUs in the eight regions of the country.
These committees also make recommendations
to undertake research on immediate problems of
a region. Officials from the ICAR, ICAR institutes,
SAUs, State Line Department, Non-Governmental
Organisations (NGOs), members of parliament
and farmers representatives are members of these
committees.
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After Independence, agricultural research was
given much emphasis which in turn led to increased
agricultural production and near self-sufficiency in
food grains in the country. The greater emphasis
given to the agricultural research could be
established by the fact that the system guided by
the ICAR now has:
49 ICAR institutes;
17 National Research Centers;
Six Bureaux;
25 project directorates;
79 All India Coordinated Research Projects and
AINPs;
607 Krishi Vigyan Kendras;
52 State Agricultural Universities;
One Central Agricultural University;
Four Central Universities having Faculty of
Agriculture.
In addition, some other organisations are involved
in agricultural research:
About 23 traditional universities are carrying out
agricultural research;
Scientific organisations such as the Council of
Scientific and Industrial Research (CSIR), and
Bhabha Atomic Research Centre (BARC);
Government departments such as the
Department of Science and Technology and the
Department of Bio-technology;
Private and voluntary organisations;
Scientific societies and institutions like the
National Dairy Development Board which has
been instrumental in transforming the dairy
industry for rural development.
To Conclude
Agricultural research in India has an interesting
history regarding its growth and development.
It started during the colonial era and today the
agricultural research system is probably the largest
research system in the world. In the current
scenario, the ICAR at the national level mainly aids,
promotes and coordinates research and education
activities throughout the country. The research and
education responsibilities at the state level rest with
the SAUs.
In addition to these main streams of research, some
general universities and other agencies like scientific
organisations related to agriculture, government
departments, voluntary organisations, private
institutions etc, participate in the nations research
efforts. The role of NARS in the development of
agricultural research is of great importance within
which all these organisations come.
References: History of agricultural research in India by
Anwesha Borthakur and Pardeep Singh
International Journal of Social Science & Interdisciplinary
Research
Voice of Research
Agricultural
research in
India has an
interestinghistory
regarding its
growth and
development. It
started during
the colonial
era and today
the agriculturalresearch system
is probably the
largest research
system in the
world
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Farmer to
Consumer Initiative
SOCIALENTREPRENEUR
For years, in India, there is a set path
for agriculture produce to reach the
consumer. It is through the Agricultural
Produce Market Committee (APMC),
a marketing board established by state
governments of India. In order to facilitate farmers
to sell their produce and get reasonable prices,
APMCs are created in many towns, where farmers
can sell their produce under the supervision
of APMC. Farmers cannot sell their produce
outside this APMC mechanism. This makes them
vulnerable to traders and marketing agents price
manipulations.
If we study the past history of India since
Independance, we will learn the facts that neither
farmer nor consumer have benefitted from
this established mechanism. The farmers were
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compelled to sell their produce to the APMCs
spread across the country and directly or indirectly
the traders and marketing agents used to decide
the price of the produce. The result is obvious;
neither the farmer nor the consumer can control
the prices and in bargain though, the consumers
were and are paying higher prices year-by-year.An out-of-the-box solution is required to change
this situation and then the concept of reaching the
consumer directly needs to be explored.
Farmer to Consumer
Due to rapid urbanisation, land prices are
skyrocketing and due to high input cost, the
agriculture business is getting costlier day-by-day,
thus, leading the farmers to quit this unprofitable
profession. Even the farmers children are
not getting into this high input and low return
(assumed) profession. Rather, they are preferring
to work in corporate offices, at any level and salary.
The situation is alarming for agribusiness.
experiment, the government changed APMC rules
to allow the farmers to sell their produce directly
to urban consumers.
In the context of the above, we need to understand
the Farmer-to-Consumer initiative. The SWOT
analysis of the initiative needs to be done with a
To change this scenerio, the concept of group
farming was introduced by some socially active
visionaries in the agriculture sector. Through
this, input and labour costs could be saved to a
great extent. But still, getting fair a price for their
produce was a dream for the farmers. Therefore,
the need of maximising the returns sproutedthe concept of reaching the consumer directly,
avoiding the set APMC route. In Maharashtra, on
experimental basis, some farmer groups were
allowed to sell their produce mainly vegetables
and dairy products directly to consumers in
Pune. The results were encouraging both for the
farmers and consumers. On the basis of the same
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free mind to evolve the system and make it more
rewarding for both the beneficiaries farmer and
consumer.
The Advantages
As the name suggests, farmers can reach their
consumers directly, thus creating a bonding effect.
This can lay a strong foundation for the long
relationship ahead. This initiative reduces the final
cost of produce for the consumers, and at the same
time, it increases the output for farmers due to
a reduced number of mediators such as traders,
wholesalers and retailers, and their profit margins.
The benefits of reduced pricing and higher returns
can be enjoyed simultaneously. This is the USP of
this initiative. The initiative is creating a win-win
situation for both the parties which normally is
difficult to achieve in any such process.
Due to less handling, quality of produce can be
maintained. As time is also saved in repetitive
loading and unloading at traders, wholesalers
and retailers ends, this helps in maintaining the
freshness of the produce.
As the learned and health conscious consumers
in the urban areas wish to know more about the
origin of the produce they consume, this initiative
gives them the satisfaction of getting the produce
from the right source instead of blindly buying from
roadside vendors. The produce harvested in not
so fertile land treated with high doses of fertilisers,
or with contaminated water in highly polluted
environments, can cause health issues.
When implemented in a group, this initiative
opens up different avenues and helps in generating
direct or indirect employment opportunities in
the villages, such as loaders/unloaders, grading,
packaging, transport, quality control, delivery
person, marketing, counter sales, exhibitors,
planners, telecallers, customer service executives
and many more.
The Shortfalls
The biggest weakness of this initiative is feared to
be:, if the farmers do the marketing, their focus on
farming will shift from farming to marketing. Though,
there is a valid point in it, it can be overcome by
group activities and rotation of responsibilities.
It is very difficult for marginal or for that matter
individual farmers to implement this initiative as it
becomes very expensive in reaching the customer.
The answer is group activity which will create unity
among like-minded farmers and it is a known fact
that unity is the first step in solving any community
issues and progressing towards a common goal.
It is also feared that, due to this initiative small
retailers will loose their business. However, it is
not true. There is enough business for everyone as
this is a day-to-day and most essentially required
business. Due to the increased competition
between retailers and farmers reaching consumers
directly, both entities will have to be on their toes
in maintain the quality standards, service and most
importantly pricing. In the bargain, the consumer
will have the choice of better alternatives.
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Agricultural Disaster Declared for Hawaii County
Federal disaster loans and other assistance will be available for farmers who suffered losses in Hawai
County from the wind, rain, and flooding from Tropical Storm iselle. Hawaii County has been designated
a primary natural disaster area by the US Department of Agriculture, according to members of Hawaiis
congressional declaration.
Agriculture Secretary Thomas Vilsack declared an agricultural disaster after examining loss reports and
determining that agricultural production losses from the storm met eligibility requirements. Hawaii County
farmers have eight months to apply for disaster loans. Preliminary assessments show papaya farmers suffered
more than $50 million in damage and losses from the storm.
In India, we
have ample
requirements
of agriculture-
basedcommodities.
A country
with 125 crore
consumers and
increasing, will
never face out
of business
situations. Thiswill give the
assurance to
the farmers
about the
assured sale of
their produce
The Road Ahead
In India, we have ample requirements of
agriculture-based commodities. A country with 125
crore consumers and increasing, will never face out
of business situations. This will give the assurance to
the farmers about the assured sale of their produce.
The need of the hour is to reach the target
audience with quality, fair pricing and on time.
Possible Pot Holes in the Road Ahead
The base of this initiative is a strong like-minded
farmer group. They are bound together with a
common goal of reducing the input and maximising
the output. There is an internal supply chain
working in the background. The entire mechanism
of this initiative works as a perfect machine.
Malfunction of any one part of this mechanism can
hamper the entire machine in producing the desired
output. In any machine, wear and tear is normal
and can be overcome with regular cleaning, oiling,
greasing and servicing. Periodic overhauling ensures
smooth functioning of the machine. Likewise, even
the human group work mechanism is required
with counselling, training, motivation, rotation
in responsibilities etc, for smooth functioning. A
strong leader is required to do all such training
and motivation to keep the group progressing. It
mostly depends on the leader as to how the group
becomes successful and prospers in life. Any leader
getting off the track due to personal egos, political
or external pressure, or any other reason can very
well negatively influence the groups performance.
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All issues among the group members needs to be
handled sensitively. The young memb